Rabu, 03 Oktober 2012

Will Apple Regain Market Share With the iPhone 5?

We are all tuned in when it comes to the Apple brand. The iPhones have taken the smartphone manufacturing sector to a new level and every so often Apple announces a new version. The latest version to hit the market after the iPhone 4 and 4s is the iPhone 5. The iPhone 5 is the sixth generation of Apple smartphones and its release will certainly have apple enthusiasts queuing for the new device.

Almost,the iPhone 5 is prone to encounter more competition than its predecessors. Unlike the iPhone 4 that could have stood alone without any serious challenge from either Samsung or any of the androids phones. The new apple smartphone finds a market where Samsung is leading the industry and the androids are increasingly gaining market share.

The improvements on the new iPhone 5 that includes a much better camera and long-term technology (LTE) 4G can already be found in some android phones. The new iPhone 5 seems to be a lot lighter than its predecessors and has a larger screen making it more comfortable for the eyes. Nevertheless, the incremental improvements in software and hardware on the iPhone 5 seems insignificant in comparison to what other phones already have.

Apple is well aware of the recent developments in the market. Samsung has been leading in market share since the second quarter of last year with 30 percentage points while Apple has only 18.8 percent of market share. With the iPhone 4, Apple lead the market for quite a long time before being dethroned by Samsung.

Apple has almost certain advantages. Many customers already have iPhones and are unlikely to switch to other smartphones. JP Morgan an Asymco analysts thinks that Apple may sell up to 170 million iPhone 5 units. Apple also has taken some initiatives to integrate further the market. It is collaborating with more carriers and has expanded its distribution channels internationally. Also, half of consumers in the US still do not have smartphones which gives Apple an opportunity for further integration in the US market. Apple is also fast infiltrating China which it considers an essential market with growth potentials.

Expectations are that the new iPhone 5 could send ripples throughout the markets. Competitors have reasons to be nervous. The new iPhone could over-shadow Nokia's Lumia 920 or Motorola's Droids and Samsung could lose its crown. If that scenario were to happen the question is; how long can Apple maintain itself at the top and how much of the market share can it regain? Now-a-days, the technology behind Apple's Smartphones have been widely adapted on different models and phone companies, every so often, do not waste time to announce a new model or technological upgrades to shake the market.